Michigan Disability Insurance

Employers in Michigan who employ at least three workers at a time or have regularly employed at least one worker for a minimum of 35 hours for 13 weeks are required to provide workers’ disability coverage, either as a self-insured or through an insurance company. Disability benefit was made available to Michigan workers, beginning in 1912. Compensation is provided for disability or death as a result of a work-related injury or disease without regard to who may be at fault. Workers are compensated either by the employers or through their insurance provider.

Employees’ Responsibilities under the Law

Department of Consumer and Industry Services, Bureau of Workers' & Unemployment Compensation, oversees workers' disability compensation programs. Employees are required to report details of work-related accidents or diseases promptly to the employer, supervisor or other person in charge. Failure to give notice of an accident or injury within three months may result in ineligibility for compensations. Workers must submit to reasonable and periodic medical examinations, if requested by the insurer or employer. An employee must cooperate with rehabilitation efforts directed toward assisting him or her to return to appropriate competitive employment. An employee must accept a reasonable offer of employment from the previous employer, another employer or through the Bureau.

Employees’ Rights under the Law

Bureau of Workers’ & Unemployment Compensation’s guidelines indicate that employees in Michigan are entitled to:

1. Wage loss benefits for the period of the disability, commencing on the 14th day of disability. (Even if an employee returns to work, he or she may continue to receive a partial benefit, if the job to which they return after injury pays less than the amount they were making before the injury).
2. Medicare and treatment, immediately after injury.
3. Vocational rehabilitation, such as job counseling, guidance, job placement or retraining.
4. Death benefits, if an employee dies as a result of an injury or work-related disease. The employer is responsible for payment of the reasonable expenses of the employee's illness, funeral and burial. Funeral and burial expenses are limited at $6000 or the actual cost. Compensations are payable to the dependents of a deceased employee.
5. A Hearing, mediation or arbitration, if a disabled worker disagrees with any decision of the employer or the insurance company. The employee may file an application for hearing before a magistrate at the Bureau of Workers' & Unemployment Compensation.